The £900,000 raised covered an £800,000 purchase, with the remaining £100,000 going on stamp duty, legal costs and cosmetic works.

The facility was agreed at 55% LTV, with a gross funding amount of £1.3m.

Westminster, Kensington and Chelsea, Tower Hamlets, Brent and Barnet together hold more than a third of London’s available rental stock.

Formations fell 22.8% year on year in July to September, from 22,864 to 17,648, after a 1.0% rise in the first quarter.

The loan was set at 70% LTV against a Romford property independently valued at £515,000.

Rising London yields and tenant demand point to early signs of recovery in buy-to-let investment.

Property income tax rates are set to rise from 20% to 24% for basic-rate taxpayers, 40% to 44% for higher-rate taxpayers and 45% to 49% for additional-rate taxpayers.

93% of landlords who own their portfolios outright report a profit, compared with 79% of those with buy-to-let borrowing.

84% of professional investors plan to grow their portfolios, according to Handelsbanken research, up from 54% the previous year.

Two-year fixed rates in Molo’s Standard range now start from 3.60%, down from 3.70%, at up to 75% LTV.